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KRDO recent articles.en-US&amp;copy; 2014 KRDOHomeHomeen-US&amp;copy; 2014 KRDODodge warns that its own dealers are scamming customershttp://www.krdo.com/news/economy-tracker/dodge-warns-that-its-own-dealers-are-scamming-customers/31586062
Dodge is calling out some of its own dealers for what it says is unethically and possibly illegally taking deposits for a hot car model they can't deliver.
Dodge said that a "small number" of dealers are taking multiple deposits for the 2015 Dodge Challenger and Charger SRT Hellcat models, even though their customers might have to wait months for their cars, if they get them at all.
"An isolated number of dealers have taken a far greater number of orders than they could reasonably expect to fulfill under the ...allocation system," said a statement from Dodge, a unit of Fiat Chrysler Automobiles.
Dodge said the dealers who are improperly taking more orders than they can deliver are causing a customer relations issue. But the automaker didn't identify the dealers, and spokeswoman Kristin Starnes could not immediately say if the automaker will take any steps against them.
Challenger sales are up 60% the first two months of this year, while Charger sales are up 23%. But Dodge won't say how many of the Challengers and Chargers it is selling are the sought-after Hellcat models.Tue, 03 Mar 2015 18:28:53 GMT315860622015-03-03T18:28:53ZIHOP declares 'national pancake day'http://www.krdo.com/news/economy-tracker/ihop-declares-national-pancake-day/31582838
Dig in: It's national pancake day.
So says IHOP, which should know, considering it is the International House of Pancakes.
It's a made up occasion, of course, but before you flip out, know that IHOP says March 3 is the tenth annual national pancake day.
To celebrate, IHOP is offering customers a free short stack -- three pancakes, for the uninitiated -- of its buttermilk variety.
Diners will be asked to leave a donation for a charity like Children's Miracle Network Hospitals, and IHOP said that over the years, it has collected $16 million for charities.
If the occasion has creped up on you, IHOP says customers can come in between 7 a.m. and 10 p.m. and ask for the offer. It is available at most locations.
If you don't make room for a plate, approach social media at your own risk: #NationalPancakeDay was already trending on Tuesday morning.
Like other made up celebrations, there's little rhyme or reason behind why March 3 was selected. Others, for example, celebrate national pancake day on September 26, part of the equally arbitrary national breakfast month.
But that doesn't make the moment any less delicious.Tue, 03 Mar 2015 16:44:46 GMT315828382015-03-03T16:44:46ZMan blames exploding iPhone for leg burnshttp://www.krdo.com/news/man-blames-exploding-iphone-for-leg-burns/31575568
A New York man says his smart phone blew up in his pocket and he wound up in a hospital.
Erik Johnson of Lindenhurst says his iPhone 5C spontaneously erupted in extreme heat while it was in his pants pocket, giving him second- and third-degree burnson his leg the size of a football.
He was headed to a wake for his cousin in New Jersey on February 14, Johnson said, and he dropped his car keys.
"When I went to bend over, I heard a pop," he told CNN. "I heard a sizzling, and I ended up ripping my pants off to stop it from burning me."
Johnson said he didn't know what was causing the pain at first and there was no warning -- just an extreme burn and a lot of pain. In a panic, he quickly started ripping at his pants as the phone began to melt the edges of his pocket shut, he said.
"I was trying to get it out of my pocket," he said. "It started burning right through my pants. It was burning my leg, and I had to get my pants off somehow."
Johnson's brother, who was with him at the time, decided driving him to the hospital would be faster than dialing 911, Johnson said.
They drove to the Bayonne Medical Center in New Jersey. After being evaluated in the emergency room, Johnson was taken by ambulance to the Burn Center at Staten Island University Hospital. The burn center confirmed to CNN that he spent 10 days there receiving treatment.
"I still can't believe it," Johnson said. "I've never dealt with anything like this before."
He works as an operating engineer in New York City, maintaining escalators, cranes and forklifts.
He said now he is at home with family in Lindenhurst, and a nurse comes in every day to change his bandage.
In the meantime, he said, he hasn't even thought about buying a new phone.
Mike Della, a personal injury lawyer on Long Island who is representing Johnson, says despite two phone calls and a letter, Apple had not yet responded to his queries about why his client's phone suddenly exploded in heat.
CNN reached out to Apple, and the company stated that it is looking into the incident.
Johnson purchased the phone last year and had not been using a battery case or third-party charger, Della said.
"First and foremost, we have to find out how this happened and prevent it from happening ever again," Della told CNN. "That's the whole goal here. Is the product safe?"
Della said because of this case, he now is quick to take extra precautions with his phone.
"Now, every single time I have my iPhone, instead of putting it in my pocket, I put it in the seat next to me because of this case," he said. "My wife does the same thing, and so does everyone else at the (law) firm. It's a little scary."
"You shouldn't have to worry about your phone exploding," he said.Tue, 03 Mar 2015 16:25:24 GMT315755682015-03-03T16:25:24ZChina tops U.S. at the box office for first timehttp://www.krdo.com/news/economy-tracker/china-tops-us-at-the-box-office-for-first-time/31578012
Move over Hollywood! There's a new star stealing the spotlight -- China has beat the U.S. for the first time in monthly box office sales.
China brought in $650 million in box office revenue for February, surpassing sales in the U.S. of $640 million, according to EntGroup, a Chinese entertainment research firm. Chinese theaters pulled in $282 million during the week of Lunar New Year, a popular movie-going period.
The top grossing Chinese film, "The Man From Macau II," starring Hong Kong actor Chow Yun Fat, brought in $104 million. Action film "Dragon Blade," with Jackie Chan, John Cusack and Adrien Brody, came in second at $95 million.
Chinese moguls have been making significant investments in the country's entertainment industry, looking to cash in big on the fast-growing market.
In 2013, Chinese billionaire Wang Jianlin -- who owns U.S.-based AMC Cinemas -- invested $8.2 billion to create a Chinese version of Hollywood. When complete, the Qingdao Oriental Movie Metropolis will boast massive film and television studios, production facilities, theme parks and hotels.
Even tech tycoons are recognizing how much money can be made in entertainment. Alibaba co-founder Jack Ma has reportedly met with Hollywood executives, and his company has struck deals with Lions Gate to stream popular U.S. shows such as "Twilight" and "Mad Men." Rival company Tencent has struck similar deals to distribute hit shows in China.
Chinese moviegoers also love foreign films -- "Transformers: Age of Extinction," which was shot extensively in China, was a smash success.
But it remains a tricky place for foreign filmmakers. Chinese regulators only allow 34 foreign films to be show in theaters each year, limiting access to the latest Hollywood blockbusters. Approved films still face the heavy hand of government censors, who cut anything the Communist Party considers offensive or subversive.Tue, 03 Mar 2015 05:16:41 GMT315780122015-03-03T05:16:41ZArmored truck robbed of millions in goldhttp://www.krdo.com/news/armored-truck-robbed-of-millions-in-gold/31574446
An armored truck carrying several million dollars worth of gold was robbed while it was stranded on Interstate 95 in Wilson County, North Carolina.
According to the Wilson County Sheriff's Office, deputies responded to an armed robbery of more than $4 million in gold, just before 7 p.m. ET Sunday. The armored truck was paused after experiencing mechanical issues during a trip from Miami to Massachusetts.
The two guards, employed by Transvalue Inc., were forced to the ground and robbed at gunpoint by three men driving a white van. The guards' hands were then bound behind their backs before they were instructed to walk into a nearby wooded area, the sheriff's office said.
"Transvalue Inc. deeply regrets the events that transpired yesterday evening," Chief Executive Officer Jay Rodriguez said in a statement to CNN. "We are pleased that our crew was not harmed. At this time we are working with the authorities to try and resolve this matter."
The FBI has also been notified, according to Public Affairs Special Agent Shelley Lynch. The FBI is "coordinating with our law enforcement partners to determine whether a federal crime has been committed".
Meanwhile Transvalue is offering a $50,000 reward for any information leading to the arrests of the suspects responsible, according to Rodriguez.
Anyone with information is encouraged to contact the Wilson County Sheriff's Office at 252-237-2188.Tue, 03 Mar 2015 02:57:39 GMT315744462015-03-03T02:57:39ZDow sets record as Nasdaq tops 5,000http://www.krdo.com/news/economy-tracker/dow-sets-record-as-nasdaq-tops-5000/31569392
The Nasdaq topped the 5,000 level for the first time in 15 years Monday as the Dow Jones industrial average set a closing record.
It was a brief peak. The Nasdaq touched 5000.33 early in the day and then closed at 5,008.10.
But the psychological mark was hit. Believe it or not, the Nasdaq is now close to its all-time peak of 5,132.52, which it notched during the Dot-com bubble.
The Dow jumped 156 points to close at 18,289, beating a record of 18,225 set last week.
The Dow and S&P 500 have been routinely hitting new records for the past year.
A lot of people have concerns that this might be a warning sign that stocks are back at lofty levels again, but much is different now versus the Dot-com era. Many of the companies leading the charge this time are well established and have a lot of cash on hand.
Apple has more than $175 billion in cash, for example. And the stock is only trading at about 15 times earnings estimates for this fiscal year. In 2000, some leading tech companies were valued at more than 100 times profit forecasts.
History lesson: Tech stocks plummeted in 2000 as prices for technology companies, particularly relatively new Internet firms, got way too high in a relatively quick fashion. It was a classic bubble.
Several Internet stocks went out of business because they spent too much and did not have solid business plans. Who could forget the likes of Pets.com and its sock puppet in a Super Bowl ad?
The plunge was breathtaking. By October 2002, the Nasdaq had fallen to around 1,1108 -- nearly 80 percent below its all-time high of about 5,132.
But tech stocks have come roaring back since the broader market bottomed nearly six years ago during the Great Recession.
The mobile and social media revolutions have helped lead the way as Apple, Google and Facebook have all emerged as some of the leading tech companies in the world.
Deja vu all over again? Still, there are some eerie comparisons to15 years ago. Apple is now worth more than $750 billion and some experts are predicting that the company will one day top the $1 trillion market value level.
Back in 2000, many were saying the same thing about Cisco Systems. That didn't happen. Cisco is no slouch. It's even in the Dow. But its stock has not gotten back to 2000 levels. Its market value is $150 billion.
Even though a lot of the leading publicly traded tech companies are trading at reasonable valuations, the same can't be said for all firms.
Twitter and Netflix trade for more than 125 times earnings estimates for 2015. Electric car maker Tesla is valued at about 200 times this year's profit forecasts.
Some hot, private startups -- companies that could one day go public -- are also raising money from venture capitalists that make them worth staggering amounts of money.
Uber is the poster child for a possible bubble in Silicon Valley. It's worth more than $40 billion. Snapchat, Airbnb and Dropbox are all valued at more than $10 billion. So is SpaceX, the rocket company founded by Tesla CEO Elon Musk.Tue, 03 Mar 2015 00:52:00 GMT315693922015-03-03T00:52:00Z$2 gas is gone -- for nowhttp://www.krdo.com/news/economy-tracker/2-gas-is-gone-for-now/31569638
Gone are the days of $2 gas -- at least for now. Prices at the pump have climbed steadily for five weeks in a row.
The national average for a gallon of regular gas jumped nearly 40 cents a gallon in that period, to $2.43 a gallon, according to AAA.
That's the longest streak of increases in about two years, pushing average price back above $2 a gallon in all 50 states. In January, more than half of U.S. gas stations were selling gas for less than $2, and the national average stood at $2.03 a gallon.
Despite the price increase, drivers are still saving money at the pump. Prices are currently 90 cents a gallon below where they were in September 2014.
In January, before prices bottomed out, a gallon of gas was selling for less than the cost of the crude used to make it, according to Tom Kloza, chief oil analyst for the Oil Price Information Service, which tracks prices on behalf of AAA.
Those low prices prompted refiners to cut back on production, Kloza said. He expects prices to rise through March as refiners prepare to switch to more expensive summer blends of gasoline.
But crude prices are still very low. Weakening economies in Europe and Asia, as well as more fuel efficient vehicles, have all cut worldwide demand for crude. An increase in U.S. oil production, which made the nation the world's largest source of oil last summer, has also pushed prices down, as has OPEC's refusal to cut production. A strong dollar is also pushing prices lower.
One factor that has not affected prices, according to Kloza, is a refinery strike by the United Steelworkers union. Management has kept these refineries up and running despite the strike, so it's had little impact on gasoline production and prices.
Kloza expects prices to top out at about $2.50 to $2.70 a gallon, before turning lower once again. By this summer or early this fall, he predicted, gas will be back below $2 in many areas.Mon, 02 Mar 2015 21:58:00 GMT315696382015-03-02T21:58:00ZBlackBerry commits to software on any devicehttp://www.krdo.com/news/economy-tracker/blackberry-commits-to-software-on-any-device/31556132
The next time you use BlackBerry, it might be on your iPhone.
BlackBerry announced plans to make its latest software offerings available on iOS, Android and Windows phones and tablets.
The software will include communication, security, and workplace tools, allowing users to edit documents, share calendars, hold secure video conferences and protect themselves from identity theft, among other things.
The move continues BlackBerry's pivot away from the smartphone hardware market. BlackBerry's devices have been losing market share for years and now account for a small fraction of smartphones sold.
Instead, CEO John Chen has been focusing on a new plan: selling the company's enterprise software for use on all mobile devices, including those sold by one-time competitors like Apple.
Under Chen's leadership, only 46% of the company's revenue comes from hardware sales, and the rest comes from software, services and other sources, according to its most recent earnings filings.
Sunday's announcement at the Mobile World Congress represents a "major company-wide initiative in BlackBerry's commitment to build out its robust software portfolio," the company said in a statement. The software will be customized for each type of device and will be released later this year.
"Our goal is to be wherever our users need and want us, with our software suites, whether that's on an iPhone or a BlackBerry Classic," Chen said in the statement.
The BlackBerry Classic, complete with the company's traditional QWERTY keyboard, was released in late 2014.
BlackBerry also announced it would combine some of its security software with tools designed by Samsung.
The new tools are aimed at users who would have carried two phones to keep their business and personal lives distinct. They will incorporate government-grade security and put up a wall to separate personal and work content.
BlackBerry and Samsung have denied recent reports that they are considering a merger.Mon, 02 Mar 2015 18:53:35 GMT315561322015-03-02T18:53:35ZLumber Liquidators stock pummeled after '60 Minutes' probehttp://www.krdo.com/news/economy-tracker/lumber-liquidators-stock-pummeled-after-60-minutes-probe/31561910
A report on CBS' "60 Minutes" has knocked the floor out from under Lumber Liquidators.
The report by CNN's Anderson Cooper revealed Chinese-manufactured laminate flooring sold by the company contains high levels of the cancer-causing chemical formaldehyde.
Lumber Liquidators plunged more than 25 percent by mid-morning Monday. Earlier the stock was halted from trading.
That's after the stock lost more than a quarter of its value -- 26 percent -- last Wednesday when the CEO warned investors of an upcoming report on the show that would portray the company "in an unfavorable light."
Lumber Liquidators has 352 stores in the U.S. and Canada.
The '60 Minutes' report cited lab tests performed for an environmental and consumer protection nonprofit that found some samples of laminate flooring contained very high levels of the chemical.
Some pieces had six to seven times the level of formaldehyde allowed under California law, according to environmental attorney Richard Drury, who was interviewed by "60 Minutes." Others had 20 times the limit.
A doctor told CBS long-term exposure to chemicals at those levels "would increase the risk for chronic respiratory irritation, change in a person's lung function, increased risk of asthma" and be especially dangerous for children.
The suspect flooring is in "hundreds of thousands" of homes nationwide, according to Drury.
Some investors, like the well-known hedge fund manager Whitney Tilson, have bet against the company's stock. So they stand to profit when the stock price falls.
"In 16 years of professional money management, I've seen hundreds of companies do all sorts of bad things to get their stock prices up. But this has got to be the worst," Tilson told "60 Minutes."
Lumber Liquidators responded to the report Monday, saying that it is "a leader in safety."
"We comply with applicable regulations regarding our products, including California standards for formaldehyde emissions for composite wood products -- the most stringent rules in the country," the company said in a statement said. "We stand by every single plank of wood and laminate we sell all around the country."
The company claimed its critics are greedy investors seeking to make money off of the company's misfortune.
Lumber Liquidators' products have long been viewed skeptically by environmentalists. It has been accused of illegally sourcing wood, and those accusations may be behind a 2013 raid on its headquarters.Mon, 02 Mar 2015 17:52:50 GMT315619102015-03-02T17:52:50ZMichael Jordan joins billionaires' clubhttp://www.krdo.com/news/economy-tracker/michael-jordan-joins-billionaires-club/31562750
Michael Jordan, considered the best basketball player of all time, has just joined the billionaires' club.
Jordan is one of the 290 newly-minted billionaires on Forbes' annual list of the world's richest people. He's certainly one of the most recognizable names on the list -- sorry, LeBron.
Jordan amassed his $1 billion fortune partly through his endorsement deal with Nike. The Jordan brand by Nike brought in an estimated $2.25 billion in 2013, which earned the 52 year-old athlete $90 million, according to Forbes.
But it was Jordan's ownership of the Charlotte Hornets basketball team that catapulted him into the billionaire's ranks this year. NBA teams soared in value after Steve Ballmer, the former Microsoft CEO, paid $2 billion for the Los Angeles Clippers.
All told, the world's 1,826 billionaires have a combined net worth of $7.05 trillion, up from $6.4 trillion in 2014.
Topping the list are the usual suspects: Microsoft's Bill Gates ($79.2 billion); cellphone magnate Carlos Slim ($77.1 billion) and value investor Warren Buffett ($72.7 billion). All three saw their net worth increase last year.
As in years past, Silicon Valley is the place to be for young billionaires.
Among the 46 billionaires under 40 years old were executives at Uber, Airbnb and Snapchat.
The youngest billionaire on the list is the 24-year-old Snapchat co-founder Evan Spiegel.
Elizabeth Holmes, at 31, is America's youngest self-made billionaire. She's also among the 197 women on the Forbes list. Holmes dropped out of Stanford at 19 to found Theranos, a company that's developing new blood testing technology.
Wal-Mart heiress Christy Walton was the richest female on the list, with a net worth of $41.7 billion.
The United States was home to the most billionaires, thanks to the tech boom and a strong U.S. dollar. There 536 American billionaires, with 131 of them in California.
China has the second highest number of billionaires, followed by Germany and India.
Russia's economic woes have taken a toll on the nation's billionaires. The number of Russian billionaires on the list fell to 28, down from 111 in 2014.
Ukraine's president Petro Poroshenko, who made his billions in the candy business, also dropped off the list of billionaires this year.
Altogether, 138 people fell off the list, while 19 passed away.Mon, 02 Mar 2015 17:12:12 GMT315627502015-03-02T17:12:12ZJack Nicklaus launches ice cream brandhttp://www.krdo.com/sports/legend-nicklaus-launches-own-ice-cream-range/31522620
Golf legend Jack Nicklaus proved almost unstoppable in a career which netted him 18 major titles but just maybe his then rivals could have disturbed his concentration on course by tempting him with his favorite treat.
Nicklaus -- nicknamed "The Golden Bear" -- has a particular craving for ice cream and now the 75-year-old American has launched his own brand with his name emblazoned over the packaging.
The ice cream comes in seven distinct flavors and is made by a Minnesota-based manufacturer for distribution across the United States.
Nicklaus, who retired from competitive golf in 2005, took a leading role in testing the product and told his official website that he relished the task.
"It's no secret that I love ice cream," Nicklaus said.
"Needless to say, I have never had so much fun in the research and development of a product!"
If the new range proves popular and makes a profit, donations from the proceeds will be given to children's charities.
Nicklaus, who racked up 73 wins on the PGA Tour, has built up a business empire which includes golf course design and equipment, real estate and lifestyle products.
He is considered by many experts as golf's all-time greatest player and his major titles tally is four more than achieved by Tiger Woods.
In March, Nicklaus will be presented with a Congressional Gold Medal by the leaders of U.S. House and Senate in recognition of his achievements on and off the course.
It is the highest civilian award the United States Congress can bestow.Mon, 02 Mar 2015 16:55:03 GMT315226202015-03-02T16:55:03ZApple, Yahoo bus drivers vote to unionizehttp://www.krdo.com/news/economy-tracker/apple-yahoo-bus-drivers-vote-to-unionize/31555630
Bus drivers for Apple, Yahoo and several other Silicon Valley giants have unionized.
The results of Friday's vote means 158 full- and part-time drivers for the tech companies' bus contractor have a new avenue to negotiate wage increases and address a major workplace frustration: the hours-long window between the morning and evening commute for which the drivers sit idle and are unpaid.
In addition to Apple and Yahoo, the drivers transport employees of Amtrak, eBay, Genentech and Zynga. The drivers will be represented by the Teamsters.
They're following in the footsteps of workers who drive shuttle buses for Facebook employees. A contract agreement -- with significant wage increases, a shift differential and benefits like health insurance and a retirement plan -- between those drivers and their employer was struck about a week ago and is awaiting approval from Facebook.
The Teamsters announced over the weekend it will also represent the newly-unionized group.
"(W)e call on Apple, eBay, Zynga, Genentech, Yahoo and Amtrak to encourage their contractor to agree to the same economics that the Facebook drivers will enjoy," Rome Aloise, a vice president with the Teamsters, said in a statement.
The employees officially work for Compass Transportation, which has a contract with the six tech companies.
It wasn't immediately clear when the drivers would seek contract negotiations with Compass, which didn't immediately respond to a request for comment on Sunday.
The buses have come to represent the economic divide between the haves -- like the employees of tech firms -- with the have nots in San Francisco. The employees who choose to live in the city are driving up rents there, squeezing out tenants with means like the bus drivers, and are shuttled miles away to their offices.
Wage data for the Compass Transportation drivers was not immediately available, but Aloise of the Teamsters said the drivers for Facebook are currently paid on average $17.93 an hour. He said the contract would mean wages climb to between $22.50 and $28.50 in three years.
Besides the pay, a major concern of the Compass drivers are the hours they wait unpaid between commutes. The drivers for Loop Transportation, the company contracted by Facebook, resolved that issue with a 10 percent shift differential pay for drivers who work both commutes. Drivers who handle only the morning or evening will be paid for at least six hours of work, the Teamsters said.Mon, 02 Mar 2015 15:53:55 GMT315556302015-03-02T15:53:55Z#TheDress: 73 million page viewshttp://www.krdo.com/news/economy-tracker/thedress-73-million-page-views/31571240
Last week the Internet was mesmerized by the color scheme of #TheDress. On Monday, Tumblr reported just how enthralled the Internet was.
According to Tumblr, the original post of #TheDress has pulled in 73 million page views since being posted on the site on Thursday.
Yes that's right. Seventy. Three. Million.
To put that outrageous number into context, the most viewed story in the history of the popular viral news site BuzzFeed is a quiz called "What State Do You Actually Belong In?" which pulled in 41.6 million views.
In terms of Internet traffic, 73 million page views for a single story is beyond incredible. In fact, most websites would be happy to have that amount of views in a month let alone from a single story.
If that wasn't mind-boggling enough, Tumblr shared that the original post from user swiked had 140,000 page views per minute between 10:30 p.m. and 11:30 p.m. Thursday night.
That was exactly the time when the argument over the dress' color scheme was waging all over social media.
Tumblr also pointed out that BuzzFeed, which spotted the Tumblr post, has written 31 articles regarding #TheDress just in the past five days.
It was a winner for BuzzFeed as well. It's original post "What Colors Are This Dress?" garnered nearly 38 million views.Mon, 02 Mar 2015 06:00:00 GMT315712402015-03-02T06:00:00Z7 stocks Wall Street thinks will soar this yearhttp://www.krdo.com/news/economy-tracker/7-stocks-wall-street-thinks-will-soar-this-year/31552722
The bull market in stocks is getting old.
It's been alive and kicking for nearly six years, carrying the S&P 500 215% higher and into uncharted territory. On top of that, the Nasdaq is knocking on the door of 5,000 for the first time in 15 years.
None of this means the party in stocks is over. February was actually the best month for U.S. stocks since 2011.
But it does signal that it's becoming more difficult for investors to find companies that offer real upside. Many sectors of the market look pricey and others may not enjoy the explosive growth of prior years.
Don't give up on finding good deals yet. Wall Street predicts these seven stocks -- all of which have struggled this year -- still have lots of room to run, even at this stage in the bull market.
1. American Airlines & 2. Delta Air Lines
Upside potential: 47% each
Last year airline stocks took off and never landed. American Airlines surged 112% and Delta spiked nearly 70% as investors feasted on this suddenly profitable industry. The unexpected plunge in oil prices was just icing on the cake, giving the companies billions in savings.
This year has been a different story with both airlines are down between 8% and 10%, in part due to oil prices stabilizing around $50 a barrel.
But Wall Street remains very bullish on the industry, predicting both American and Delta will grow earnings by double-digits in 2015.
American is sporting a 12-month consensus price target of $70.31, while analysts think Delta will spike to $65.38, according to FactSet. Both of those targets imply a 47% spike from where the airlines are currently trading.
3. Micron Technology
Upside potential: 37%
Few large technology stocks enjoyed 2014 as much as Micron. The flash memory maker spiked 61% last year but is down 12% in 2015 due to concerns about competition from Samsung and reports about price cutting.
Yet Wall Street is only getting more bullish on the stock, with 82% of analysts who cover Micron having a buy-equivalent rating. Thanks to its early struggles this year, Micron looks cheap. It's trading at just seven times projected earnings for the year, compared with 18 for the S&P 500.
4. Yahoo
Upside potential: 32%
Investors loved Marissa Mayer's tax-free plan to spin off Yahoo's $40 billion Alibaba stake, but now they're left to focus on the company's core operations. Those look decidedly less exciting, with revenue shrinking due to display ad trouble.
But Wall Street believes investors are still Yahoo and activist hedge fund Starboard Value is trying to boost the stock by arranging a marriage with AOL.
Analysts have placed a $58.29 price target on Yahoo, suggesting a hefty gain from Friday's close of $44.28.
5. Alcoa
Upside potential: 30%
Alcoa may have been kicked out of the Dow in 2013 but that didn't stop the stock from zooming nearly 50% last year thanks to higher aluminum prices.
While 2015 has proven more difficult as many commodity prices have downshifted, 60% of analysts have a bullish rating on Alcoa. It's currently trading about 30% below consensus price targets.
6. Michael Kors
Upside potential: 30%
After skyrocketing in 2012 and 2013, Michael Kors is in a funk. Its share price is down 32% since topping out in February 2014 at over $100.
Investors fear the luxury brand's rapid growth has left it overexposed. Last month Kors said its North American sales growth slowed to single digits -- down from 24% the year before.
Wall Street thinks the sale on Kors stock may be overdone. It's trading at a steep discount of 30% to analysts' consensus price target of $87.92.
7. Tesla
Upside potential: 25%
After explosive growth the past two years, Tesla is now down 30% from all-time highs. Last month it reported a surprise loss due to disappointing sales.
Elon Musk recently raised eyebrows by predicting Tesla could be worth $700 billion by 2025, or basically the same amount as Apple.
That may seem "insane" given Tesla's current valuation of $26 billion, but Wall Street does think the electric car maker is going higher, at least in the short term. It closed last week 25% below consensus price targets.
Sources & methodology
The above list highlights stocks in the S&P 500 and Nasdaq 100 with the highest upside potential. CNNMoney ran a screen on FactSet that calculated the difference between the stock's closing price on Friday and the consensus price target of many Wall Street analysts for where the stock will be in a year. Companies with a market capitalization below $10 billion were excluded.Sun, 01 Mar 2015 22:36:35 GMT315527222015-03-01T22:36:35ZHyundai recalls 200,000 vehicles for power steering defecthttp://www.krdo.com/news/economy-tracker/hyundai-recalls-200000-vehicles-for-power-steering-defect/31553832
Hyundai is recalling more than 200,000 vehicles that could have a power steering defect that increases the risk of a crash, according to documents posted by the National Highway Traffic Safety Administration on Saturday.
The recall will affect Elantra sedans produced between 2008 and 2010, as well as 2009 to 2010 Elantra Touring hatchbacks. The company estimates that about 3% of those vehicles exhibit the defect.
The problem is a flaw in the vehicles' electronic power steering system, the technology that makes moving the steering wheel easier. In some cases, a control unit component senses an error in the system and disables that assistance.
"Steering control can be maintained; however, the vehicle will revert to a manual steering mode, requiring greater driver effort, particularly at low speeds," Hyundai said in a recent report filed with NHTSA.
The malfunction triggers a warning light on the dashboard, and can often be resolved by restarting the vehicle.
According to documents filed by the company, Hyundai initially determined that the problem, which first became apparent in 2010, would not require a safety recall.
The level of force necessary to steer the vehicle without power steering was within compliance standards, and the flaw has not historically been considered a safety defect in the U.S., the company said.
But automakers and the NHTSA have come under scrutiny recently for failing to issue safety recalls for defective vehicles, and companies have been issuing voluntary recalls in record numbers.
"The industry has increasingly handled similar issues through safety recalls due to the greater driver effort at low vehicle speeds," said Hyundai. "To remain consistent with that industry trend, Hyundai has decided to conduct this campaign as a safety recall."
The company will notify owners if their vehicles need to be tested for the defect, and will reimburse owners for the repair. Hyundai did not mention any incidents caused by the defect, and did not immediately respond to calls for comment.Sun, 01 Mar 2015 18:30:02 GMT315538322015-03-01T18:30:02ZSamsung unveils beautiful new Galaxy S6http://www.krdo.com/news/economy-tracker/samsung-unveils-beautiful-new-galaxy-s6/31553742
Samsung set out to build a better looking line of Galaxy phones this year, and it definitely achieved its goal.
The South Korean electronics company unveiled the Galaxy S6 and Galaxy S6 Edge on Sunday afternoon at Mobile World Conference in Barcelona. I got a chance to preview both new models at a media event in New York earlier in the week.
First things first. I'm an iPhone user. I've been an iPhone user since Apple first introduced it in 2007. Thus, my knowledge of Samsung phones and the Android platform is slim. I've only ever interacted with them when strangers stop me on the street and ask for a picture because they don't have a selfie stick. In addition, during the preview event, I only played with these phones for a few minutes.
That said, the new Galaxy S6 phones are impressive and fairly sleek.
Design: The front and back body of the phones are molded from Gorilla Glass. The frame is aluminum. Gone is the plastic shell that Samsung has been so criticized for in the past.
There are four colors for each &#8212; black, white, platinum gold, and topaz blue for the S6; black, white, platinum gold, and emerald green for S6 Edge. The Edge features curved screens on both sides of the phone. (Samsung first introduced a curved screen display last year on its phablet, the Note 4 Edge.)
The S6 and S6 Edge will no longer have expandable memory. Memory for the phones will be fixed at 32, 64 or 128 GB. Customers will also receive 100 GB of Microsoft One Drive for two years. "This helps people transition to cloud services," Samsung's senior director of product marketing Shoneel Kolhatkar told me.
Unlike the 5S, the new phones are not water resistant.
The speakers have been moved from the back plate of the phone to the bottom edge. Sound is much clearer and louder as a result.
The S6 Edge can be programmed to flash different colors for different contacts. This is helpful when a phone sits face down on a table because you can easily see who's calling without having to pick it up. You can also send a canned text message to callers by tapping the heart rate sensor on the back of the phone.
Features: If your top needs from a phone are multitasking, taking photos and videos, and mobile payments, then you may want to consider an upgrade. (Just know that if you're looking for a giant phone, you'll have to wait until later this year, when Samsung will release its next set of Note phablets).
With the Galaxy S6 and S6 Edge, Samsung wants to make it easier for you to multitask. One of the things I love about the iPhone is FaceTime. One thing I hate about FaceTime is that if I'm using it, and someone sends me a link or an email to read, I have to switch apps. This action pauses the video feed. It also forces me to toggle back and forth numerous times.
Samsung's Galaxy S6 and S6 Edge have been updated so that you have full control over how your screen looks if you have multiple programs open. It works like a desktop computer. You can easily resize windows or dock them, like you can on the Note 4.
This is handy if you want to watch a YouTube video while checking email or browsing the web simultaneously. Granted the screen is probably still too small to stay in this kind of mode for long periods of time, but it definitely delivers what multitaskers need.
Camera: The camera got a nice new feature too: Just double-click on the home button to launch the camera app, and shoot away. That's all you need to do to take a picture on the new S6 and S6 Edge. Is this faster than clicking on the home button of an iPhone, then swiping up on the screen to tap on the camera icon? Yes, especially when you factor in the time it takes to get a phone out of whatever pocket or bottomless handbag you have, not to mention the time it takes to adjust those glittens (glove mittens) during winter.
Speed aside, the Samsung Galaxy S6 and S6 Edge also boast a higher resolution camera than the iPhone. The rear camera is 16 megapixels and the front-facing one is 5 MP for both devices; both should also come with impressive light sensors that theoretically let them take better pictures in low-light conditions. We weren't able to test this nor were reporters shown any examples of pictures taken in low light conditions, so we'll definitely test this feature when we get a hold of one.
Payments: Lastly, the feature that truly sets these phones apart is their mobile payments capability.
Like Apple and Google, Samsung will have its own mobile payments platform, called Samsung Pay. Once Samsung Pay launches (sometime this summer) Samsung Galaxy S6 and S6 Edge owners will be able to pay for in-store purchases with their phones.
Unlike Apple Pay and Google Wallet, Samsung Pay can be processed by traditional magnetic stripe readers. This is huge.
Virtually all credit card machines still use magnetic stripe readers, meaning this feature benefits both consumers and businesses.
The average shopper can use Samsung Pay in many more places than Google Wallet or Apple Pay, theoretically. For businesses, this means no need to replace hardware.
The feature isn't a huge surprise. Samsung announced last week it will acquire LoopPay, the company that has made it possible to transform phones into credit cards.
Clearly there are a lot of functions that make the new Samsung Galaxy S6 and S6 Edge praiseworthy. I think Samsung fans won't be disappointed. But again, I'm just an iPhone user.Sun, 01 Mar 2015 18:11:37 GMT315537422015-03-01T18:11:37ZJanet Yellen meets with conservativeshttp://www.krdo.com/news/janet-yellen-meets-with-conservatives/31531422
Janet Yellen met Friday with conservative economists and activists who shared concerns about the potential negative impact of keeping interest rates low for too long.
Fed Governor Lael Brainard also attended the one-hour meeting at the Fed's headquarters in Washington, according to attendees.
"Chair Yellen was engaged, gracious and asked key questions," Steve Lonegan, the director of monetary policy at the American Principles in Action who organized the meeting, told CNN after the conclusion of the meeting. "I would like to hope that what we established with Chair Yellen was respect."
Lonegan and others also emphasized to Yellen and Brainard that "the left does not have a monopoly on caring about low and middle income wage earners," Lonegan said.
In addition to discussing the potential harm of keeping interest rates low for too long, some participants also shared their wish to see the central bank take a more "rules-based" approach in its policy decisions, according to several attendees. Advocates of this strategy want to see the Fed adhere to clearer rules when making decisions.
The group verbally shared their views by presenting both scientific research and telling "human interest" stories.
Lonegan declined to go into any further detail on how Yellen or Brainard responded to the economists' presentation, saying participants had agreed not to share with the public any views of Fed officials that may have been voiced at Friday's meeting.
Phil Kerpen, president of American Commitment and another attendee, said Yellen and Brainard were largely in listening mode.
"They were very engaged," Kerpen said.
Jim Martin, chairman of the 60 Plus Association, told Yellen and Brainard that record low interest rates coupled with rising cost of living are hurting the country's seniors.
"A Federal Reserve policy that eases restrictions on interest rates, allowing struggling seniors to earn even a few extra dollars from their savings and investments would be a true God send," Martin said, according to prepared remarks shared with CNN. "To the elderly, such a policy could be the difference in their very survival."
A Fed spokesman declined to comment on the meeting.
Friday's gathering follows on Yellen's meeting last year with progressive leaders, which prompted the APIA to send her a letter requesting that she meet with a group of conservative economists and activists.
Lonegan also said Friday that in conjunction with the Fed's annual Jackson Hole symposium in Wyoming this year, a group of conservative economists are planning to hold a meeting of their own "directly across the street" featuring former Federal Reserve Chair Alan Greenspan as the keynote speaker. A spokeswoman for Greenspan's firm did not immediately respond to CNN's request for comment.
"We've invited Dr. Yellen to be there as well," Lonegan said.Sat, 28 Feb 2015 14:23:19 GMT315314222015-02-28T14:23:19ZIndia 'about to take off,' government sayshttp://www.krdo.com/news/india-about-to-take-off-government-says/31538362
"India is about to take off."
That was the bold declaration from India's Finance Minister Arun Jaitley as he delivered his first full-year budget since his party won a resounding victory at the polls last May.
India's budget is a closely-watched TV event, with pre- and post-game analyses on every TV news channel. Even by those standards, Saturday's budget generated more interest than in previous years, in part because of soaring expectations on the new government.
Jaitley signaled in his speech that "incremental change" was not enough, as he announced a raft of measures to boost infrastructure and growth.
Among the key announcements, Jaitley promised that a widely anticipated national Goods and Services Tax (GST) would be implemented by April 1, 2016. As CNN has reported, India's states have a myriad of different taxes, making trading between them a nightmare.
A number of other announcements called for additional government spending in energy and housing. Jaitley announced an increase of $11.3 billion in infrastructure. He also promised a universal social security plan -- a vital need for India's millions of poor who have no access to pensions or health care.
Perhaps the biggest cheer from the stock markets -- a special trading session was held Saturday -- came when Jaitley announced a cut in the corporate tax rate from 30% to 25%.
But it wasn't all about spending. Jaitley also announced a new 2% tax of the super rich, and promised a hefty 10 year prison sentence for people caught evading taxes. Avoiding income tax is common in India, with only 3% of Indians filing returns.
On Indian TV channels, scores of analysts began to weigh in on the impacts of the budget.
Tarun Das, who ran India's Confederation of Indian Industry for 30 years told NDTV that he couldn't find a negative in Jaitley's presentation. "It's a creative, confident budget," he said. "There's a lot for a lot of people."
On the show Headlines Today, another regular commentator, Gurcharan Das, complimented the budget but said it stopped short of detail. Speaking of Jaitley's boss, India's Prime Minister Narendra Modi, he said "Modi was elected to control inflation and create jobs. He's controlled inflation, but he needs to show us how he will create jobs."
Ahead of Saturday's budget, India released its annual economic survey on Friday. The data produced by the government showed that India is projected to grow as fast as 8.5% in 2016, making it the fastest growing large economy in the world. The data was calculated according to a new methodology.Sat, 28 Feb 2015 10:44:57 GMT315383622015-02-28T10:44:57ZUnearthing America's truffle trove a lucrative nichehttp://www.krdo.com/lifestyles/unearthing-americas-truffle-trove/31511072
Jim Sanford and his dog Tom poked around the hazelnut grove on Blackberry Farm, a 9,200-acre luxury resort set in the foggy foothills of Tennessee, one Wednesday morning in December.
They were on the hunt again, though not for deer or waterfowl or the usual Tennessee fare.
The man and his curly-haired dog were searching for something fancier: Tuber melanosporum or black P&#233;rigord truffles.
Black truffles are one of the most sought-after (and expensive) delicacies in the world. Often referred to as a "black diamond," the subterranean fungus can retail for $1,000 a pound or cost a diner upward of $75 extra for a simple shaving on a dish of creamy pasta or slow-scrambled eggs.
Sanford and Tom's morning hunt proved fruitless. But the pair have had better luck than most sniffing out truffles on American soil -- a relatively new and wholly unpredictable ground for cultivation.
"This is not something where you just plant your trees and wait for your fortune to grow," Sanford said as Tom trotted behind him.
Truffles are a funny fungus; they grow underground, typically among hazelnut and oak trees, and keep most of their secrets there with them. There is a primitive understanding of the climactic and soil conditions required for the fungus to flourish, but cultivation methods are far from foolproof. Stateside, those practices are in their infancy.
Chefs such as Lachlan Mackinnon-Patterson of Frasca Food & Wine in Boulder, Colorado, certainly wouldn't mind sourcing truffles closer to home. He hosts an annual truffle dinner series and features them prominently in dishes when in season.
Every year, he buys domestic truffles from budding regions like the Pacific Northwest, but the quality isn't as reliable as he'd like it to be.
"We're counting down the minutes," he said with a hopeful tone. "Once it clicks, whether it's Blackberry or someone else, once there's a tipping point, it will really blow up."
Enthusiasts describe the truffle's olfactory Siren song, which is part of its allure, as "dank," "earthy," "musky," "pungent" -- the gist is its aroma and taste are unparalleled. "It transforms an otherwise ordinary dish into something very extraordinary," Sanford said.
Different types of truffles are found all over the world, but the P&#233;rigord and white variety from Alba, Italy, are the top dogs of the gastronomic set.
The elusive truffle hunt is often romanticized: Man and beast wander into the woods of southwest France with a shovel and a calling. A bird chips, a breeze flows and the storybook closes with "happily ever after."
If only it were that simple.
Until recently, the black truffle had been solely imported to the United States.
Less than 100 miles away from Blackberry Farm -- in Chuckey, Tennessee, of all places -- that began to change around 2007.
It all started with another Tom. Tom Michaels, who grew up mushroom hunting and wrote his Ph.D. dissertation at Oregon State University on black truffle cultivation, set his eyes on eastern Tennessee to try out his fungal knowhow in 1999.
As if the truffle business doesn't sound risky enough, it takes about six to 10 years for a tree with roots that have been inoculated with truffle spores to potentially produce a truffle. The season for harvesting runs three months from December to February.
"I'll have done everything to two trees next to each other, and one will have truffles and one won't," Michaels said.
Luckily for Michaels, something clicked.
Soon, he showed up at the kitchen of Blackberry Farm's restaurants with his basket of epicurean delights and a brochure for Tennessee truffles, though it was only his third sale.
The first question from proprietor Sam Beall: "How come I didn't know about this?"
Beall and Michaels teamed up to seed and sniff out truffles locally.
Enter the four-legged Tom, who was sourced by local breeder Hilarie Gibbs-Sykes from Italy to simplify the hunt.
Sanford, a Blackberry employee for 14-plus years who had previously run the resort's horse program, was recruited to handle the truffle-hunting canine.
At the height of Michaels's truffle business, Tom helped haul in 200 pounds in one season.
"It was a thousand dollars a pound so if you do the arithmetic, that's a good dog," Sanford said.
Mother Nature firmly in charge
In 2009, Michaels and his product were written up in GQ magazine, where food writer Alan Richman called it the "hillbilly truffle." Two years earlier, storied New York Times food writer Molly O'Neill devoted an entire column titled "Coveted, French, and Now in Tennessee" to his endeavors.
If we know anything about agriculture, though, it's that Mother Nature holds the reins.
Michaels' hazelnut trees were hit with blight after his initial success, and he had to start over with a new blight-resistant variety.
"You have to have a temperament that can deal with a lot of anxiety for many years," Michaels, 67, said.
Last year, Michaels yielded about 60 pounds on his land and sold the majority off to hyper-local ingredient-focused chefs such as Sean Brock in Charleston, South Carolina, and Linton Hopkins in Atlanta. This year, after a series of unseasonable cold snaps, and only a few days left in the season, he hasn't unearthed any truffles of sellable quality.
"Mother nature took its course," Michaels said with the matter-of-factness of someone who has been here before.
Back at Blackberry Farm, Sanford's pin that read "Truffle Dog Trainer" reflected the sun as he crouched beneath a tree to dig up a truffle-scented practice tube that Tom found. On the days when there isn't any luck, training is a commitment to the cause.
Blackberry found only one P&#233;rigord truffle last winter on its property.
If it seems like a wild goose chase, that's because it is. But Tom is a Lagotto Romagnolo; he not only enjoys the chase -- it's in his DNA. According to the American Kennel Club, Tom's breed is the only one recognized as a "specialized truffle searcher."
"We wouldn't be talking about any of this if it wasn't for Tom," Sanford said. "He has really put everything we're talking about in cultivating truffles in North America on the map."
Now 13 years old, Tom is passing the baton through his bloodline by breeding and sharing his skills. He and Sanford travel around the country to help train other canines in areas like Oregon with an eye on the truffle prize.
At Blackberry and every where else, they're hoping it's not a matter of if, but when, a consistent yield will happen.
As they say, every dog will have its day.Sat, 28 Feb 2015 09:59:16 GMT315110722015-02-28T09:59:16ZWarren Buffett knows who next Berkshire CEO ishttp://www.krdo.com/news/economy-tracker/warren-buffett-knows-who-next-berkshire-ceo-is/31538976
Warren Buffett, the billionaire CEO of Berkshire Hathaway, expects even better times ahead for his company.
He also said that he knows who will one day replace him. Of course, Buffett did not share that name with the rest of us.
"The board and I believe we now have the right person to succeed me as CEO -- a successor ready to assume the job the day after I die or step down," he wrote in his latest annual letter to investors.
Buffett added that the next Berkshire CEO would be someone that already works at Berkshire and is "relatively young."
This is Buffett's 50th annual shareholder letter since he took control of Berkshire Hathaway in 1964. So it's only natural that it's time for Buffett to prepare Berkshire investors for life without him.
Throughout the past five decades, Buffett has had a lot to say about the financial markets, economy and society.
Last year, he even gave travel tips, urging people to consider flying to Kansas City, and then drive a rental to Nebraska, since airlines often have "jacked up prices" on flights to Omaha.
But most Buffett fans read the letters for his advice on stocks -- even though Buffett has conceded that the portfolios run by his two investing lieutenants Todd Combs and Ted Weschler have outperformed his own lately.
Buffett is a classic buy and hold investor who has largely shunned pricey technology stocks in favor of blue chips in the financial, industrial and consumer sectors. He has often urged investors to not panic and dump stocks due to fear.
A constant Buffett refrain: Don't bet against America. Better times lie ahead.
That optimistic spirit was once again present in this year's letter. Buffett was particularly confident about the chances of continued success for Berkshire.
He said that "the chance of permanent capital loss for patient Berkshire shareholders is as low as can be found among single-company investments" and added that the there is "essentially zero" risk of Berkshire being hit by any major financial problems.
Buffett even joked that Berkshire would "always be prepared for the thousand-year flood" and "will be selling life jackets to the unprepared." That's a reference to some of the big investments Berkshire made in financial firms in the wake of the 2008 credit crisis.
But he added that Berkshire is now so big, it will be tough to match the performance of the past 50 years.
Buffett also stressed that the company is much more than an investing and insurance giant -- and he hinted at more deals to come.
"Berkshire is now a sprawling conglomerate, constantly trying to sprawl further," he wrote.
Still, some investors have questioned whether Buffett has lost his mojo. Big Berkshire investments IBM, Coca-Cola and American Express have lagged the market lately.
However, other Berkshire stocks -- most notably top holding Wells Fargo -- have done extremely well.
And Berkshire's own stock has outperformed the S&P 500 over the past five years. The company is now the fourth most valuable in America, trailing only Apple, Google and Exxon Mobil.Sat, 28 Feb 2015 06:00:00 GMT315389762015-02-28T06:00:00Z